Which of the Following Defines Marginal Utility

question 128

Multiple Choice

Which of the following defines marginal utility?

• A)the change in total utility divided by the price of a product
• B)the maximum amount of satisfaction from consuming a product
• C)the total satisfaction derived from a certain amount of the product
• D)the additional satisfaction from consuming one more unit of a product

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Definitions:

Subsidies

Financial assistance provided by the government to individuals or businesses to support economic activities deemed beneficial for the public.

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximizing overall welfare or social utility.

Output Quantity

The amount of goods or services produced by a company or sector during a specific period.

Social Planner

An idealized figure in economic theory responsible for designing economic policies or interventions to achieve optimal allocation of resources and welfare in a society.